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hi Im Ann homes from the University of Maryland College Park a question thats often asked is whats the difference between a cost reimbursable and a fixed price award to tell the difference you have to look at the award to see the terms and condition but generally speaking a fixed pricing agreement means that you estimate a price to the sponsor and that sponsor agrees to pay that price you know how matter how much it costs if it costs a little more you have to eat those additional costs but then again if it costs a little less that money is yours to keep a cost reimbursable contract normally is given most of our federal courts are cost reimbursable and what that means is you incur the costs and then bill the federal government for those costs and youll see where it gives an upper limit but its not necessarily a guarantee that youll receive anything over and above what they promise to pay
